Presented by Jenny Philip, Manager of Economic Research Greater Houston Partnership

1. Houston’s Economic Outlook Presented by Patrick Jankowski, Vice President Research Greater Houston Partnership Presented by Jenny Philip, Manager of Economic Research Greater Houston Partnership

2. The Recession and Recovery Cliffs Notes Version

3. Recession and Recovery * Through August Source: Texas Workforce Commission

4. Recession and Recovery * Through August Source: Texas Workforce Commission

5. Recession and Recovery * Through August Source: Texas Workforce Commission

6. Recession and Recovery * Through August Source: Texas Workforce Commission

7. Now you know enough to pass.

8. Houston vs. The Competition

9. Percent of jobs recovered through Aug ’12Houston vs. Top 10 Metros 100% Source: U.S. Bureau of Labor Statistics

10. Percent of jobs recovered through Aug ’12Houston vs. Top 10 Metros 162.2% 117.0% 101.5% 82.0% 62.5% 35.0% 29.4% 26.7% 24.6% 21.5% Source: U.S. Bureau of Labor Statistics

11. Percent of jobs recovered through Aug ’12Houston vs. Second 10 Metros 162.2% 55.1% 61.4% 55.0% 43.1% 43.5% 34.2% 31.6% 18.7% 23.1% 21.8% Source: U.S. Bureau of Labor Statistics

12. In the competition among U.S. metros for job creation?

13. In the competition among U.S. metros for job creation? Houston has already won the super bowl.

14. So what makes Houston hot? Us Them

15. Houston never had a housing bubble.

16. No Housing Bubble * Median-priced home divided by median household income for each metro area. Source: GHP calculations based on National Association of Homebuilders data

17. No Housing Bubble *Years of Income to Buy a Home, Q1/’06 Source: GHP calculations based on National Association of Homebuilders data

18. No Housing Bubble *Years of Income to Buy a Home, Q1/’00 vs ’06 Source: GHP calculations based on National Association of Homebuilders data

19. No Housing Bubble *Years of Income to Buy a Home, Q1/’06 vsQ2/’12 Source: GHP calculations based on National Association of Homebuilders data

20. No Housing Bubble No zoning = lower housing costs Market forces determine best use of resources

21. No Housing Bubble • “Large metro areas with the least restrictive zoning have housing cost gaps that are 40 to 63 percentage points lower than metro areas with the most exclusionary zoning.” • Housing Costs, Zoning, and Access to High Performing Schools, Brookings Institute, April 19, 2012

22. Perhaps you’ve seen the headlines?

23. Perhaps you’ve seen the headlines?

24. Perhaps you’ve seen the headlines?

25. We found shale in our backyard Harris County

27. Shale in our backyard

28. Shale in our backyard

29. So where are we now? 8,400 corporate jobs added since May ’09 9,100 oil field service jobs added since Nov ’09 7,400 equipment manufacturing jobs added since Nov ’09

30. WTI Spot Price ($/bbl ) • Wednesday close • $90.26 • One year ago • $76.40 • Three years ago • $69.34 • Average over last fifty-two weeks • $95.02

31. WTI Spot Price ($/bbl )

32. Global trade ties

33. Global Trade Ties Source: IHS Global Insight

34. Global Trade Ties $ Value, Billions, Houston-Galveston Customs District, Through August Source: U.S. Census Bureau

35. Data does not include trade in services 1,500 firms in Houston’s service sector doing business overseas

36. Jobs Outlook

37. Job Creation -- Forecast vs Actual

38. Job Creation -- Forecast vs Actual

39. Job Creation -- Forecast vs Actual

40. Job Creation -- Forecast vs Actual

41. So where are we now?

42. So where are we now? We’re cool . . .

43. So where are we now? We’re cool . . . . . . and we’re popular.

44. Don’t take my word for it.

47. Houston’s Population Clock

48. Houston’s Population Clock The region adds 110,000 residents each year. • 65,000 via natural increase • i.e., more births than deaths • 45,000 via net inmigration • i.e., more people moving in than out

49. Houston’s Population Clock Every 5.4 minutes a new Houstonian is born.

50. Houston’s Population Clock Every 15.7 minutes a Houstonian dies.